Paysafe Wallet Users Rise 8% as iGaming Volume Accelerates in Q2

Paysafe added users to its digital wallets in the second quarter, but wallet volume stayed flat at $6.6 billion. For high-risk PSPs, the more interesting bit is where the growth came from: Latin America, Europe, and stronger iGaming processing in June and July.

1. Three-month active consumers increased 8% year over year to 7.8 million, marking the fifth consecutive quarter of growth. Digital Wallets volume, however, remained roughly flat at $6.6 billion, while transactions per active user were unchanged and average revenue per active user declined 5%.
2. In Paysafe’s own readout, wallet growth was led by Latin America and Paysafe Wallet in Europe, partly offset by declines elsewhere and tougher comparisons in sweepstakes and cryptocurrency trading. Paysafe Wallet acquisitions rose 11% in the quarter, and the product is now available in 19 European countries after its launch in Poland.
3. CEO Bruce Lowthers said the company continues to see double-digit user growth in Latin America. Paysafe also reported double-digit consumer acquisition growth from additional marketing in priority European markets, which points to where the company is still willing to spend to keep wallet growth moving.
4. Merchant Solutions volume increased 5% to $37.3 billion, and revenue rose 6% to $246.1 million. North American iGaming grew 17%, and Paysafe said iGaming processing accelerated in June and July.
5. The SMB business was flat, even as Lowthers said there was slight improvement in attrition, a slowdown in existing customer same-store sales, and strong growth in new sales and MPI initiatives. Clover was one of the stronger parts of the SMB portfolio, with revenue up double digits and no pricing pressure visible.